Must-Read for Lithium Battery Exporters: Avoid Risks – Countries and Transportation Methods to Watch Out For

With the explosive growth of the global new energy industry, the demand for lithium batteries as core energy storage components continues to surge. From small lithium batteries for consumer electronics to large power batteries for new energy vehicles and energy storage stations, Chinese lithium batteries have become the world’s core supply source thanks to technological advantages and cost competitiveness. However, the journey of lithium battery exports is not smooth. Complex regulatory policies, stringent certification requirements, and high-risk transportation links in various countries may all become obstacles for enterprises going global. This article focuses on the core risk points of lithium battery exports, details the countries/regions and transportation methods that require special attention, and provides a comprehensive risk avoidance guide for enterprises.

I. Global Market Pattern and Risk Background of Lithium Battery Exports

China is the world’s largest producer and exporter of lithium batteries. According to data from the China Chemical and Physical Power Industry Association, China’s lithium battery export volume exceeded 300 billion yuan in 2023, accounting for over 70% of the global total. Europe, North America, and Southeast Asia are the main target markets. Behind the impressive data, potential risks remain prominent: in 2023, the value of goods returned globally due to lithium battery compliance issues exceeded 5 billion yuan, direct losses caused by safety accidents during transportation exceeded 2 billion yuan, and some enterprises were forced to withdraw from the market for failing to meet the certification requirements of target countries.

Risks in lithium battery exports mainly focus on three dimensions: first, policy compliance risks – countries have significant differences in import certification, technical standards, and environmental requirements for lithium batteries, which are frequently updated; second, transportation safety risks – lithium batteries are classified as dangerous goods, with potential safety hazards such as short circuits, fires, and explosions during transportation, and countries have strict regulations on transportation methods, packaging specifications, and labeling; third, trade barrier risks – some countries restrict imports of Chinese lithium batteries through anti-dumping, countervailing, and technical barriers. If enterprises ignore these risks, they will not only face direct losses such as detained goods and fines but also damage their brand reputation and miss market opportunities.

II. High Alert! Export Risks and Response Strategies for These Countries/Regions

Based on factors such as safety, environmental protection, and industrial protection, different countries/regions have formulated differentiated import policies for lithium batteries. Below are high-risk markets that export-oriented enterprises need to focus on and corresponding response plans.

(I) North American Market: High Compliance Thresholds and Frequent Trade Barriers

The North American market is an important export destination for Chinese lithium batteries, including the United States and Canada. However, this market has stringent compliance requirements and prominent trade barrier risks.

1. United States: Dual Barriers of Certification and Trade

The United States implements multiple supervision measures on lithium battery imports: first, UL certification is mandatory, including standards such as UL 1642 (small lithium batteries), UL 2054 (battery packs), and UL 991 (lithium battery chargers). Products without certification are prohibited from entering the U.S. market; second, FDA registration and FCC certification are also necessary processes, involving tests on electromagnetic compatibility and safety performance of batteries; in addition, U.S. Customs and Border Protection (CBP) frequently initiates anti-dumping and countervailing investigations against Chinese lithium batteries. In 2023, it imposed an anti-dumping duty of up to 25% on Chinese power batteries.

Response Strategies: Enterprises need to complete certifications such as UL, FDA, and FCC in advance to ensure products meet U.S. technical standards; closely monitor U.S. trade policy trends, rationally plan supply chains, and avoid tariff barriers by setting up factories in Mexico or Canada; at the same time, strictly comply with the requirements of the U.S. Hazardous Materials Regulations (HMR) and make preparations for transportation compliance.

2. Canada: Dual Supervision of Environmental Protection and Safety

Canada’s supervision of lithium batteries focuses on two core aspects: environmental protection and safety. First, ISED certification (formerly IC certification) requires lithium batteries to meet electromagnetic compatibility and safety standards; second, environmental management requirements – the content of harmful substances such as mercury and cadmium in lithium batteries must comply with the Canadian Environmental Protection Act; third, transportation links must adhere to the Transportation of Dangerous Goods Regulations (TDG) of Canada, which have detailed requirements for packaging, labeling, and documentation.

Response Strategies: Enterprises need to entrust local Canadian certification bodies to complete ISED certification and ensure products meet the requirements for harmful substance content; submit dangerous goods transportation applications to Transport Canada before shipment, use packaging materials that meet TDG standards, and affix clear dangerous goods labels.

(II) European Market: Stringent Technical Standards and Upgraded Environmental Requirements

Europe is a leading market for the global new energy industry, with the highest global requirements for the technology, environmental protection, and sustainability of lithium batteries. The EU’s New Battery Regulation has raised the compliance threshold to a new level.

1. EU: Comprehensive Compliance Challenges Under the New Battery Regulation

The EU’s New Battery Regulation (BPR), which came into effect in 2023, imposes strict requirements on the entire life cycle of lithium batteries: first, carbon footprint limits – the carbon footprint of power batteries must be below the specified threshold, and a carbon footprint declaration must be provided; second, recycling and reuse requirements – the recycling rate of lithium batteries must reach a certain proportion, and enterprises must assume recycling responsibilities; third, restrictions on harmful substances – the use of mercury, cadmium, and other harmful substances is prohibited, and strict limits are imposed on the content of lead, cobalt, and other elements; fourth, CE certification – lithium batteries must pass UN 38.3 tests, EMC tests, etc., and obtain the CE mark to enter the EU market.

In addition, the EU has detailed requirements for the labeling of lithium batteries, which must indicate battery capacity, carbon footprint rating, recycling mark, and other information. Products that fail to meet labeling requirements will be prohibited from sale.

Response Strategies: Enterprises need to establish a full-life-cycle compliance system, optimize production processes to reduce carbon footprint, and entrust third-party institutions to complete carbon footprint accounting and declarations; lay out battery recycling networks in advance to meet the EU’s extended producer responsibility requirements; conduct product tests in strict accordance with CE certification standards to ensure labeling complies with regulatory requirements; pay attention to updates of the implementation rules of the New Battery Regulation and adjust product plans in a timely manner.

2. United Kingdom: Independent Compliance System After Brexit

After Brexit, the United Kingdom has established an independent regulatory system for lithium batteries, which differs from EU regulations: first, UKCA certification has replaced CE certification as a prerequisite for entering the UK market, and enterprises need to apply for UKCA certification separately; second, transportation links must comply with the UK’s Dangerous Goods Regulations, which have detailed differences from the EU’s ADR rules; third, the UK’s import tariff and VAT policies for lithium batteries are also different from those of the EU, requiring separate cost accounting.

Response Strategies: Enterprises need to distinguish between the compliance requirements of the EU and UK markets and apply for UKCA certification separately; verify the UK’s dangerous goods transportation rules before shipment to ensure documentation and packaging meet requirements; cooperate with local UK logistics providers to accurately calculate tariffs and VAT and avoid cost overruns.

(III) Southeast Asian Market: Coexisting Potential and Risks with Volatile Policies

Driven by demographic dividends and the rise of the new energy industry, the Southeast Asian market has become an emerging growth point for Chinese lithium battery exports. However, this market has insufficient policy stability and weak infrastructure, with undeniable risks.

1. Key Risk Points

The regulatory policies for lithium batteries in Southeast Asian countries have three major problems: first, volatile policies – some countries (such as Indonesia and Malaysia) frequently adjust import tariffs and certification requirements. In 2023, Indonesia raised the import tariff on lithium batteries from 10% to 15%; second, incomplete certification systems – certification standards vary across countries, and some countries lack professional testing institutions, leading to lengthy certification processes; third, weak infrastructure – inadequate port storage, transportation, and logistics facilities increase the risk of goods damage and delays.

2. Response Plans for Key Countries

• Indonesia: As the largest new energy market in Southeast Asia, Indonesia implements quota management and local content requirements for lithium battery imports. Enterprises need to apply for import quotas in advance and give priority to purchasing locally produced raw materials; at the same time, they must obtain SNI certification (Indonesian National Standard). It is recommended to cooperate with local enterprises to shorten the certification cycle.
• Vietnam: Vietnam has low import tariffs (5%-10%) on lithium batteries but requires TCVN certification (Vietnamese Standard) and environmental testing; in terms of transportation, Vietnam’s port infrastructure is relatively complete, but inland transportation efficiency is low. It is recommended to choose major ports such as Ho Chi Minh City Port and Haiphong Port and plan inland transportation routes in advance.
• Thailand: Thailand has relaxed certification requirements for lithium batteries but requires compliance with the Dangerous Goods Transport Act, with packaging and labeling meeting international standards; in addition, Thailand encourages lithium battery enterprises to set up factories locally and offers tax incentives. Enterprises with long-term layout plans may consider local production.

(IV) Other High-Risk Markets: Middle East, South America, Africa

1. Middle Eastern Market: Represented by the UAE and Saudi Arabia, this market has high certification requirements for lithium batteries, requiring SASO certification (Saudi Arabia) and ESMA certification (UAE), with strict requirements for product safety performance and environmental indicators; in terms of transportation, the Middle East has a hot climate, so enterprises need to provide heat-insulating and moisture-proof packaging for lithium batteries to avoid safety accidents caused by high temperatures.
2. South American Market: Countries such as Brazil and Argentina have severe trade protectionism, frequently initiating anti-dumping investigations against Chinese lithium batteries with high import tariffs (15%-30%); at the same time, the region has a complex certification system with inconsistent standards across countries. It is recommended that enterprises obtain certification from Mercosur (Southern Common Market), which is applicable in multiple countries to reduce compliance costs.
3. African Market: The African market has great potential but high risks, mainly including unstable policies, customs corruption, backward infrastructure, and low logistics efficiency; enterprises are advised to prioritize relatively mature markets such as South Africa and Nigeria and cooperate with powerful local distributors to reduce market development risks; at the same time, simplify packaging and select wear-resistant transportation materials to avoid goods damage during transportation.

III. Analysis of Transportation Risks: Key Links Prone to Problems

Lithium batteries are classified as Class 9 dangerous goods under the United Nations Recommendations on the Transport of Dangerous Goods – Model Regulations (TDG), with flammable, explosive, and corrosive properties. The transportation link is a high-risk area for exports. Different transportation methods have significant differences in risk points and compliance requirements, which enterprises must accurately grasp.

(I) Sea Freight: Mainstream Transportation Method with Risks Concentrated in Compliance and Packaging

Sea freight is the mainstream transportation method for lithium battery exports, accounting for over 70% of the total. However, it has strict compliance requirements, and links such as packaging, labeling, and documentation are prone to problems.

1. Core Risk Points

• Failure to pass UN 38.3 tests: Lithium batteries for sea freight must provide UN 38.3 test reports to prove their safety under extreme conditions such as high/low temperatures, vibration, and impact. Products that fail the tests are prohibited from sea transportation;
• Non-compliant packaging: Sea freight of lithium batteries requires UN-certified dangerous goods packaging. Packaging materials must have fireproof, leak-proof, and short-circuit prevention functions. Some enterprises use ordinary packaging to reduce costs, which may lead to detained goods;
• Non-standard labeling: Clear dangerous goods labels, UN number labels, and orientation labels must be affixed. Missing or incorrect labels will result in customs penalties;
• Incomplete documentation: Documents such as the Dangerous Goods Declaration (DGD), packing list, invoice, and UN 38.3 test report must be submitted. Incomplete or incorrectly filled documents will cause customs clearance delays.

2. Risk Avoidance Plans

• Entrust qualified third-party institutions to complete UN 38.3 tests in advance to ensure the authenticity and validity of test reports;
• Select UN-certified packaging that meets international standards and choose appropriate packaging methods (such as single packaging or combination packaging) based on the type and quantity of lithium batteries;
• Affix labels strictly in accordance with the requirements of the International Maritime Dangerous Goods (IMDG) Code. Labels must be clear and firm to avoid falling off during transportation;
• Entrust professional dangerous goods logistics providers to assist in preparing documentation to ensure completeness and standardization and avoid customs clearance delays due to document issues.

(II) Air Freight: Efficient but High-Risk with Strict Compliance Thresholds

Air freight is suitable for high-value-added and urgent lithium battery orders. However, due to the complex air transportation environment (pressure changes, severe vibration), it has extremely high safety risks and the strictest compliance requirements.

1. Core Risk Points

• Strict air transportation restrictions: The International Air Transport Association (IATA) classifies lithium batteries into “compliant lithium batteries” and “prohibited lithium batteries for air transport”. Large power batteries and damaged lithium batteries are prohibited from air transportation;
• High requirements for packaging and marking: Air freight of lithium batteries requires IATA-approved packaging with anti-static and short-circuit prevention functions. The packaging must be marked with “Cargo Aircraft Only” and “Lithium Battery” on the outside;
• Strict safety inspections: Airlines conduct rigorous safety inspections on lithium batteries, including X-ray inspections and unpacking inspections. Products that fail the inspections will be refused transportation;
• High transportation costs: Air freight costs are 3-5 times higher than sea freight, with additional fees such as fuel surcharges and dangerous goods surcharges, which may easily lead to cost overruns.

2. Risk Avoidance Plans

• Confirm in advance whether products meet air transportation requirements. Prioritize sea freight or land transportation for large power batteries;
• Use IATA-certified professional packaging, and add anti-static separators and buffer materials inside the packaging to avoid battery short circuits;
• Entrust logistics providers with dangerous goods air transportation qualifications to ensure they have relevant certifications and rich operational experience;
• Communicate with airlines in advance to inform them of the dangerous characteristics of products and avoid transportation delays due to information asymmetry.

(III) Land Transportation: Cross-Border Risks Concentrated in Border Customs Clearance

Land transportation is mainly applicable to lithium battery transportation between China and neighboring countries (such as Russia and ASEAN countries), with risks concentrated in border customs clearance and transportation safety.

1. Core Risk Points

• Complex border customs clearance: Cross-border land transportation requires passing through multiple national border ports, each with different customs clearance requirements and tariff policies, which may easily lead to detained goods or delays;
• Transportation safety hazards: Jolting and collisions during land transportation may damage lithium battery packaging, causing short circuits, fires, and other safety accidents;
• Impact of road conditions and weather: Some border areas have poor road conditions and complex climate conditions (such as high temperatures, severe cold, and heavy rains), which may easily affect transportation progress and goods safety.

2. Risk Avoidance Plans

• Select formal cross-border land transportation logistics providers with dangerous goods transportation qualifications and rich border customs clearance experience;
• Reinforce packaging for lithium batteries and use shockproof and collision-proof packaging materials to ensure packaging integrity during transportation;
• Understand the customs clearance policies and tariff requirements of transit countries in advance and prepare complete customs clearance documents to avoid delays due to document issues;
• Rationally plan transportation routes and schedules based on road conditions and weather, avoiding harsh weather and poor road sections.

(IV) Multimodal Transport: Need to Control Linkage Risks Between Links

Multimodal transport (such as sea + land transport or air + land transport) is a common method for lithium battery exports, combining the advantages of different transportation methods. However, special attention must be paid to the linkage risks between links.

1. Core Risk Points: Different transportation methods have different compliance requirements. During the linkage process, problems such as non-compliant packaging, missing labels, and incomplete documentation are likely to occur; logistics information is opaque, and the division of responsibilities between links is unclear, making it difficult to pursue accountability in case of problems.
2. Risk Avoidance Plans: Select logistics providers with multimodal transport qualifications to coordinate transportation and compliance matters across all links; establish a logistics information tracking system to monitor the transportation status of goods in real time; clarify the division of responsibilities between links in the transportation contract to avoid buck-passing in case of problems.

IV. Core Practical Suggestions for Avoiding Lithium Battery Export Risks

In addition to targeted response strategies for specific countries and transportation methods, enterprises also need to establish a comprehensive risk prevention and control system to avoid risks from multiple dimensions such as product R&D, compliance certification, logistics selection, and insurance coverage.

(I) Lay Out Compliance Systems in Advance to “Prepare for a Rainy Day”

Compliance is a prerequisite for lithium battery exports. Enterprises need to integrate compliance requirements into the entire process of product R&D, production, and sales: first, establish a professional compliance team to track policy trends in target markets and adjust product plans in a timely manner; second, complete certifications for target markets in advance to avoid delays in product launches due to long certification cycles; third, establish a product quality traceability system to ensure the entire process of products from raw material procurement to production and transportation is traceable, in response to customs spot checks.

(II) Select Professional Dangerous Goods Logistics Providers to Reduce Transportation Risks

The professionalism of logistics providers directly affects the risk control of the transportation link. Enterprises should prioritize logistics providers with the following qualifications: first, possess dangerous goods transportation qualifications (such as MSDS certification for sea freight and IATA qualifications for air freight); second, have rich experience in lithium battery transportation and be familiar with the transportation rules of different countries; third, have a sound logistics network and information tracking system to monitor the status of goods in real time; fourth, have emergency